RETAIL OPPORTUNITY INVESTMEN (ROIC)
US76131N1019 - REIT
Overall ROIC gets a fundamental rating of 4 out of 10. We evaluated ROIC against 127 industry peers in the Diversified REITs industry. While ROIC is still in line with the averages on profitability rating, there are concerns on its financial health. ROIC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ROIC was profitable.
ROIC had a positive operating cash flow in the past year.
Each year in the past 5 years ROIC has been profitable.
Each year in the past 5 years ROIC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.25%, ROIC perfoms like the industry average, outperforming 59.20% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.89%, ROIC is in line with its industry, outperforming 59.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.13%, ROIC is in the better half of the industry, outperforming 61.60% of the companies in the same industry.
ROIC had an Average Return On Invested Capital over the past 3 years of 2.80%. This is in line with the industry average of 2.97%.
The 3 year average ROIC (2.80%) for ROIC is below the current ROIC(3.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.25% | ||
| ROE | 2.89% | ||
| ROIC | 3.13% |
ROA(3y)1.56%
ROA(5y)1.49%
ROE(3y)3.6%
ROE(5y)3.51%
ROIC(3y)2.8%
ROIC(5y)2.77%
1.3 Margins
ROIC's Profit Margin of 11.07% is fine compared to the rest of the industry. ROIC outperforms 62.40% of its industry peers.
ROIC's Profit Margin has declined in the last couple of years.
ROIC has a Operating Margin of 34.39%. This is in the better half of the industry: ROIC outperforms 74.40% of its industry peers.
ROIC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 83.51%, ROIC belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
ROIC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.39% | ||
| PM (TTM) | 11.07% | ||
| GM | 83.51% |
OM growth 3Y0.29%
OM growth 5Y-0.84%
PM growth 3Y-2.53%
PM growth 5Y-6.17%
GM growth 3Y-0.94%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
ROIC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ROIC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ROIC has more shares outstanding
ROIC has a better debt/assets ratio than last year.
2.2 Solvency
ROIC has an Altman-Z score of 0.64. This is a bad value and indicates that ROIC is not financially healthy and even has some risk of bankruptcy.
ROIC has a Altman-Z score (0.64) which is in line with its industry peers.
ROIC has a debt to FCF ratio of 20.57. This is a negative value and a sign of low solvency as ROIC would need 20.57 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 20.57, ROIC is doing good in the industry, outperforming 66.40% of the companies in the same industry.
ROIC has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
ROIC has a Debt to Equity ratio (1.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 20.57 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.44
WACC7.14%
2.3 Liquidity
ROIC has a Current Ratio of 0.98. This is a bad value and indicates that ROIC is not financially healthy enough and could expect problems in meeting its short term obligations.
ROIC's Current ratio of 0.98 is on the low side compared to the rest of the industry. ROIC is outperformed by 65.60% of its industry peers.
ROIC has a Quick Ratio of 0.98. This is a bad value and indicates that ROIC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.98, ROIC is not doing good in the industry: 61.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
ROIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.95%, which is quite impressive.
ROIC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.73% yearly.
Looking at the last year, ROIC shows a small growth in Revenue. The Revenue has grown by 5.70% in the last year.
The Revenue has been growing slightly by 2.07% on average over the past years.
EPS 1Y (TTM)28.95%
EPS 3Y-1.2%
EPS 5Y-2.73%
EPS growth Q2Q366.67%
Revenue 1Y (TTM)5.7%
Revenue growth 3Y4.88%
Revenue growth 5Y2.07%
Revenue growth Q2Q7.6%
3.2 Future
The Earnings Per Share is expected to grow by 14.75% on average over the next years. This is quite good.
Based on estimates for the next years, ROIC will show a small growth in Revenue. The Revenue will grow by 4.68% on average per year.
EPS Next Y2%
EPS Next 2Y7.05%
EPS Next 3Y14.75%
EPS Next 5YN/A
Revenue Next Year4.84%
Revenue Next 2Y5.38%
Revenue Next 3Y4.68%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.02, ROIC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ROIC is valued a bit cheaper than 63.20% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROIC to the average of the S&P500 Index (28.15), we can say ROIC is valued inline with the index average.
The Price/Forward Earnings ratio is 41.21, which means the current valuation is very expensive for ROIC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROIC indicates a somewhat cheap valuation: ROIC is cheaper than 63.20% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. ROIC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 41.21 |
4.2 Price Multiples
ROIC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ROIC is cheaper than 64.80% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROIC indicates a somewhat cheap valuation: ROIC is cheaper than 66.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.37 | ||
| EV/EBITDA | 13.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ROIC has a very decent profitability rating, which may justify a higher PE ratio.
ROIC's earnings are expected to grow with 14.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.01
PEG (5Y)N/A
EPS Next 2Y7.05%
EPS Next 3Y14.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.82%, ROIC is a good candidate for dividend investing.
ROIC's Dividend Yield is comparable with the industry average which is at 5.70.
ROIC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
5.2 History
The dividend of ROIC decreases each year by -10.38%.
ROIC has paid a dividend for at least 10 years, which is a reliable track record.
ROIC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.38%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
205.54% of the earnings are spent on dividend by ROIC. This is not a sustainable payout ratio.
DP205.54%
EPS Next 2Y7.05%
EPS Next 3Y14.75%
RETAIL OPPORTUNITY INVESTMEN
NASDAQ:ROIC (5/17/2024, 7:24:03 PM)
After market: 12.75 0 (0%)12.75
+0.1 (+0.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 41.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)13.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.25% | ||
| ROE | 2.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.39% | ||
| PM (TTM) | 11.07% | ||
| GM | 83.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)28.95%
EPS 3Y-1.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.7%
Revenue growth 3Y4.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y